F E A T U R E
F E A T U R E
The Payment Systems Regulator ’ s new APP ( Automated Push Payments ) Fraud reimbursement policy is essential but is just solving one end of the problem . UK authorities and businesses should be doing more to cut off APP fraud at source . The policy ensures 99 % of victims get their money and is billed as the strongest regulation in the world . However , rather than focusing all efforts on the cleanup operation , businesses should be using the power of automation and AI to prevent people from committing this fraud in the first place .
High on the agenda
APP fraud is a huge problem across the UK economy , costing £ 459.7 million in the last year . The impact of this criminal activity is massive – for consumers , the missing funds could prevent them from paying next month ’ s rent , and SMBs could be left with a shortage in funds . Although the money is likely to be reimbursed under the new policy , it will still take time to reach the victims . This means some people will still be failing to make deadlines to pay the rent and some businesses will still be late paying wages .
The amount refunded has been limited to £ 85,000 , down from the previous cap , which was almost five times higher (£ 415,000 ). Although the PSR says 99 % of claims it receives do not exceed £ 85,000 , the small number of victims who lose more than this will be left permanently out of pocket . Whether it takes time to get the money back , or they never do , www . intelligentfin . tech
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